As regulation and customer expectations grow, regulated entities face numerous challenges in maintaining compliance and security. One of the primary tools in preventing financial crime is the implementation of an effective Know Your Customer (KYC) checklist.

KYC and Anti-Money Laundering (AML) are essential in the prevention of financial crime, ensuring that financial institutions and other regulated industries can operate within regulatory guidance, keeping their customers and business operations secure.

According to the National Crime Agency, fraud accounts for over 40% of crimes in the UK, with an estimated 3.5million incidents of fraud experienced per year. Additionally, The United Nations Office on Drugs and Crime estimates that between 3 and 5% of global GDP is laundered each year.

These statistics prove that financial crime continues to plague businesses and markets globally, so implementing an effective KYC and AML framework to identify money laundering and fraud is critical.

What is KYC and financial crime?

KYC, or Know Your Customer, is a fundamental process for regulated industries aimed at verifying the identity of customers and assessing the potential risks of money laundering, fraud, or financial crime.

By implementing AML software and KYC checks at the point of account opening, businesses that are required to actively prevent financial crime can help mitigate these risks and protect their business from illicit activities.

KYC plays an integral role in the prevention of financial crime by confirming the identity of the customer is correct. This is achieved by matching personally identifiable information such as name, address, and date of birth against trusted data sources such as Credit Reference Agencies, or by using services such as document verification.

Whilst the KYC process itself is a key driver in preventing financial crime by confirming that the person attempting to open an account is who they claim to be, it is also a deterrent for fraud; potential fraudsters are much less likely to attempt to infiltrate businesses using effective KYC procedures and will instead seek businesses with less secure controls.

Financial Crime Regulatory Requirements

Regulatory bodies globally have established stringent financial crime and KYC requirements to ensure that businesses have clear guidelines on the prevention of financial crime and due diligence.

In the UK, the Financial Conduct Authority (FCA) plays a critical role in reducing and preventing financial crime through robust regulatory frameworks. Compliance with KYC regulations in the UK involves implementing comprehensive customer identity verification processes, transaction monitoring, and detailed Customer Due Diligence (CDD) requirements.

Other regulatory bodies involved in KYC and prevention crime include the Financial Action Task Force (FATF), the European Union who enforce Anti-Money Laundering Directives (with the latest being 6AMLD), The Bank Secrecy Act (BSA) in the United States, the Australian Transaction Report and Analysis Center (AUSTRAC), and more.

For global businesses, not only are they posed numerous challenges to prevent financial crime due to increasingly sophisticated techniques and more attacks than ever, but they also need to navigate the complexity of regulation and nuances between global regulators.

KYC processes and how they work with financial crime prevention

The KYC process typically involves three key steps:

Customer Identification Program (CIP)‍

The first step to KYC and financial crime prevention involves financial institutions having processes in place to collect and verify the personal information of their clients. The data collected during this phase includes name, address, date of birth, identification documents, and any other relevant information.

At account opening, most regulated businesses will require this information before the account can be opened. This can be done in several ways including integrating to automated solutions, building an in-house solution, or manually collecting information from customers. As digitisation increases, more businesses are turning to automation to ensure that the information can be collected in real-time.

Customer Due Diligence (CDD)

Once the information has been collected, businesses must assess the risk profile of each customer. This includes understanding any discrepancies in information provided against data sources, assessing if the customer is sanctioned or politically exposed, and identifying any potential indicators of fraud.

The benefit of automated solutions is that CIP and CDD can both be completed automatically and in real-time, only alerting the compliance team of any potential errors or risk flags and therefore, saving time and improving the efficiency of onboarding for any customers who don't pose a risk.

Ongoing monitoring

The KYC process doesn’t end with initial identity verification. Regulated entities are required to continuously monitor their customer base to be alerted to any changes that might impact financial crime infiltration. This includes re-screening customers against PEP & sanction lists, transaction monitoring to identify any indicators of fraud, and keeping all customer data secure for auditing purposes.

Best practices for effective KYC for crime prevention

To maximise the effectiveness of KYC in preventing financial crime, institutions should adhere to best practices including:

Regular training

Ensuring that MLRO’s and compliance teams are regularly trained of the latest KYC and AML regulations is crucial. This helps maintain a high level of awareness and competence in identifying emerging threats and leads to increased effectiveness of mitigating risks.

Use of advanced KYC solutions

Leveraging sophisticated Know Your Customer (KYC) software can streamline processes, making it more efficient and effective. With increased digitisation, manual verification is no longer fit for purpose in many cases. This means that businesses are under more pressure than ever to identify financial crime whilst offering customers with an efficient account opening experience.

Enhanced Due Diligence (EDD)

For high-risk customers, more rigorous scrutiny is required. Enhanced Due Diligence (EDD) involves a deeper, and in many cases more manual investigation into the customer’s background information and the source of their funds. For those customers marked as high-risk, businesses may decide to also increase the frequency of ongoing monitoring protocols.

How to maximise KYC processes with automation and technology

The increased use of technology to achieve growth has revolutionized the way financial institutions manage their KYC processes. Automation and emerging technologies such as AI and machine learning can significantly enhance the efficiency and accuracy of KYC operations.

KYC-as-a-service

Outsourcing KYC to specialist service providers can be an option to reduce the burden of managing and maintaining a KYC framework, allowing businesses to focus on their core business activities while ensuring compliance. However, pure outsourcing can lead to a lack of control so businesses should be wary of how much KYC control they relinquish if choosing this method.

KYC software

One of the more popular choices in the last decade is the implementation of KYC software. The global KYC software market is expected to grow at a compound annual growth rate of 20.8% from 2022 to 2023 to reach $15.81 billion by 2030. There’s a reason this is a popular choice as it offers both more control over KYC onboarding processes by providing customers with a real-time experience, but it also takes full onus away from businesses developing and maintaining their own systems.

Blockchain and AI

An emerging method of providing a secure and transparent way to manage KYC data is blockchain technology and artificial intelligence. Although this method is still untested at large scale, new businesses are emerging to try and use the very technology posing more threats through fraud advancements such as deepfakes, to prevent fraud and money laundering.

Future of KYC and financial crime trends

As financial crime continues to become more sophisticated, the future of KYC and AML practices is beginning to take shape.

Additionally, AI and machine learning will continue to evolve, providing not only further threats to businesses but also they may lead to potentially improving detection and identification.

There is also a growing appetite for global standardisation of KYC regulations. This would facilitate better cooperation and information sharing between jurisdictions. Not only would standardisation potentially lead to more effective regulatory guidance but would also make it easier for global corporations to navigate cross-border operations.

The final key trend to look out for is increased focus on privacy. Since the introduction of GDPR (General Data Protection Regulation) in 2018, more focus has been placed on keeping customer data secure to prevent threats online. Businesses will further have to ensure all data is secure to not only remain compliant but to keep their customers safe from new threats.

How FullCircl can help

FullCircl exists to remove the regulatory and verification roadblocks to drive revenue growth. Our suite of KYC, financial crime prevention, AML, and document verification software is trusted by 700+ clients to remain compliant and offer customers a seamless onboarding experience.

Want to learn more about how FullCircl can transform your approach to compliance? Book a demo here.

Customer Due Diligence (CDD) is a critical component of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF). The process involves regulated entities gathering and verifying personal information (including name, address, date of birth, and Government issued ID documents), to ensure customers are who they say they are and identity financial crime risks.

CDD regulations are designed to ensure that businesses have the knowledge and guidance required to implement effective CDD processes and prevent the risk of money laundering and other illicit activities.

Overview of CDD regulations

Various regulatory bodies are established globally to govern CDD regulations, each aiming to enhance the transparency and integrity of businesses and their relationship with customers. The main regulatory bodies & regulation includes:

Financial Action Task Force (FATF)

This is a global regulatory body that sets standards and promotes effective implementation of AML and CTF measures. FATF recommendations form the basis for many national and localised CDD regulation.

European Union (EU) due diligence regulation

The EU has established several directives aimed at CDD at AML, including the 5th and 6th Anti-Money Laundering Directives (5AMLD and 6AMLD), which mandate comprehensive CDD measures for financial institutions within its member states.

The USA Patriot Act

This legislation includes various provisions for AML, including stringent CDD requirements for regulated entities operating in the United States. The Patriot Act specifically requires institutions to establish a robust due diligence program, ensuring that all customers have their identity verified at the point of account opening.

The UK Money Laundering act

Governed by the UK’s Financial Conduct Authority (FCA), these regulations require businesses to implement robust CDD measures to prevent money laundering, terrorist financing, and other illicit activities.

Latest CDD regulation

Regulatory bodies are continually updating CDD regulations to enhance the growing risk of money laundering and fraud. The most recent updates add more pressure for regulated entities to utilise advanced CDD compliance processes to stay ahead of the fight against financial crime. Some of the recent updates include:

The 6th Anti-Money Laundering Directive introduced stricter penalties for non-compliance and extended the scope of predicate offenses for money laundering. The directive also introduced a closer focus on verifying Ultimate Beneficial Owners (UBOs) which has put more focus on businesses implementing Know Your Business (KYB) procedures.

In the USA, FinCen’s new CDD rule also requires financial institutions to identify and verify the identities of beneficial owners of legal entity customers. The introduction of beneficial ownership verification has followed in multiple jurisdictions due to the rising risk of fraud and money laundering in B2B relationships.

The UK’s Economic Crime Levy aims to raise funds to tackle economic crime, impacting firms regulated under money laundering regulation. Any entity whose UK revenue exceeds £10.2 million per year is required to pay the levy and it is collected by the Financial Conduct Authority (FCA), the Gambling Commission (GC), and HMRC.

Challenges of CDD regulation

Whilst the majority of customer due diligence regulation aims to achieve the same result of keeping businesses and customers safe from money laundering and financial crimes, there are naturally nuances between the regulation which makes cross-jurisdiction compliance even more challenging for regulated entities.

Complexity of regulations is one of the biggest challenges facing businesses needing to implement CDD processes. Different jurisdictions have varying CDD regulations, making it difficult for global entities to develop a uniform compliance strategy.

Not only are regulations complex, but they are also ever evolving. Regulatory bodies frequently update CDD requirements to address emerging risks, changing customer behaviour, and external factors. Regulated entities need to stay agile to continuously adapt their CDD policies, KYC and AML processes, and fraud prevention measures.

Adapting to changing regulation can also be resource intensive. Implementing effective customer due diligence measures is costly from a technical and workforce perspective, meaning that reliance on legacy systems can lead to security risks if the business isn’t willing to adapt to new requirements.

Finally, the CDD process involves a significant amount of data from customer screening. To remain audit-proof, entities are required to securely store all verification data across platforms and jurisdictions. Dependent on what systems are used, this can become complex and hard to manage.

CDD best practices

To effectively comply with CDD regulations, it’s important that regulated entities adopt best practices and have a clear understanding of what measures will deliver the required results.

CDD Policy and procedures

The first step to creating an effective CDD framework is to develop an internal customer due diligence policy. This document(s) should outline the steps required for identification, verification, and ongoing monitoring. By developing this, all teams within the organisation will understand what’s required during the CDD process, how to use the tools available to them to achieve results and keep updated on the latest regulation and what risks to look out for.

Risk-based approach

Regulated entities are advised to take a risk-based approach to compliance and CDD. This means that verification and investigation measures should be tailored to the specific risks posed by different customers and transactions.

For example, if a customer attempting to onboard is identified as an ‘Ex-PEP’ (previously politically exposed persons), the business should take more caution with this customer and assign a higher risk group or more verification methods for them. This will ensure that higher risk customers are flagged for Enhanced Due Diligence (EDD) checks whilst keeping lower risk customers free of unnecessary checks.

Training and awareness

One of the most critical elements to CDD is training and awareness internally. Many global corporations are operating with thousands of compliance employees who need to be educated on the latest regulations, fraud tactics, and how to ensure business security by using the latest guidance from regulatory bodies.

Technology and automation

With increased risk and developing fraud and money laundering tactics, CDD technology and automation has emerged as an effective best practice to stay on top of requirements. These systems will often aggregate multiple sources of data and compliance checks into a centralised system & will come equipped with audit-proof storage of data and reporting tools.

How automation can help with CDD regulation

As CDD regulation continues to become more complex alongside fraud and money laundering being more difficult to detect manually, automation (otherwise known as RegTech) has emerged as a key method to assist in the due diligence process.

By implementing an automated CDD platform, regulated entities can benefit from multiple efficiency improvements and begin to use account opening as a driver of growth and not a blocker to new customers.

Automation can significantly enhanced CDD processes by:

1. Streamlining data collection: Automated systems can efficiently gather and process large volumes of KYC, AML, and anti-fraud data from several data sources.

2. Reducing errors: Automation minimises the risk of human error in data entry and verification processes, ensuring that CRMs are enriched with correct and in-depth customer data.

3. Enhancing efficiency: Automated CDD systems can analyse customer information in real time, identifying potential risks and allowing for faster decision-making.

4. Ensuring compliance: Automated CDD can be regularly updated to align with the latest regulatory guidance, ensuring continuous compliance and keeping ahead of emerging risks.

How FullCircl can help

FullCircl works with 700+ regulated entities including 7 out of the top 10 UK banks to support CDD regulatory adherence and craft great customer onboarding experiences.

Our IDV platform includes access to global KYC, AML, KYC, document verification, and anti-fraud solutions, using data from 20+ global data sources. FullCircl is data agnostic so customers can choose the data sources that fit their specific use case.

Ready to learn more about how we can help with simplified, standard, and enhanced due diligence money laundering regulations? Contact us here for a free demonstration.

Introduction to Customer Due Diligence (CDD)

Customer Due Diligence (CDD) is a critical process used by regulated businesses to gather and verify information about their clients and customers.

This procedure helps institutions identify potential risks of illegal activities, including money laundering and terrorist financing, ensuring compliance with Anti-Money Laundering (AML) regulations. By implementing robust CDD measures, organisations can protect themselves from financial crime and adhere to complex regulatory requirements.

When is CDD required?

CDD is required at the point of account opening and is relevant to a wide range of entities, including banks, financial institutions, gambling operators, cryptocurrency providers, and other businesses that handle significant financial transactions.

The process involves collecting detailed information to verify the identity of clients, understand the nature of their business relationships, and assess potential risks. Having a proactive approach to CDD not only safeguards the organisations but also promotes transparency and trust in the financial system.

Different types of CDD: when to use it and who it applies to

CDD can be categorised into three main types based on the level of risk associated with the customer and the nature of the business relationship: Simplified Due Diligence (SDD), Customer Due Diligence (CDD), and Enhanced Due Diligence (EDD).

1. Simplified Due Diligence

This is applied to customers posing a lower risk of money laundering or where regulation isn’t as stringent. This might include low-value accounts or customers from countries with robust AML frameworks. Simplified due diligence involves basic identity verification without the need for extensive documentation or manual intervention.

2. Customer Due Diligence (CDD)

This is the most common form of due diligence and applies to the majority of customers and industries. It involves verifying the customer’s identity through official documents or data checks and assessing the purpose and intended nature of the business relationship.

3. Enhanced Due Diligence (EDD)

Required for customers posing a higher risk, such as Politically Exposed Persons (PEPs), customers from high-risk countries, or those involved in complex or large transactions. EDD involves a more thorough investigation, including detailed scrutiny of the customer’s background, source of funds, and high frequency of ongoing monitoring.

CDD processes

1. Customer identification and verification

Institutions must obtain and verify information to confirm the identity of their customers in the CDD process. This typically includes collecting documents such as passport, driver's license, and personal information such as name, address, and date of birth. The aim is to ensure that the customer is who they claim to be, thus preventing identity theft and fraud.

2. Corporate verification

CDD not only applies to individuals but should also be implemented for B2B relationships. It is crucial to screen the business and directors of a business to understand risk, with the most critical element being beneficial ownership verification. This involves determining who ultimately owns or controls the business. Collecting CDD documents can be used to verify beneficial ownership.

3. Ongoing monitoring

CDD is not a one-time process. Continuous monitoring including transaction monitoring and re-screening is essential to detect and report any suspicious behaviour. This helps in identifying any changes in the customer’s risk profile and ensures compliance with regulatory requirements over time.

CDD requirements for regulated entities

Regulated institutions such as banks and financial institutions are at the forefront of implementing robust CDD requirements due to the high-risk nature of their operations. Specific regulations, such as those enforced by the Financial Conduct Authority (FCA) in the UK, mandate strict adherence to CDD measures. Key requirements include:

Know Your Customer (KYC) customer due diligence required

Regulated entities must implement KYC procedures to identify and verify the identity of their customers. This includes obtaining personal information, verifying identities, and assessing the risk level of each customer.

Customer Due Diligence (CDD) AML requirements

Regulated businesses must comply with global AML regulations, which involve comprehensive CDD processes to prevent money laundering activities. This includes verifying customers against PEP and sanctions lists, understanding the nature of business relationships, and monitoring transactions.

FCA CDD requirements

In the UK, customer due diligence requirements for financial institutions are set by Financial Conduct Authority (FCA) specific guidelines. Regulated entities must follow these guidelines to ensure they meet regulatory standard and avoid penalties. This includes performing risk assessments, maintaining accurate records, and reporting suspicious activity.

Risk-based approach

Businesses conducting CDD are encouraged to adopt a risk-based approach, tailoring their CDD measures to the risk level of each customer. High-risk customers require more rigorous EDD checks, while low-risk customers may undergo simpler verification processes.

Importance of CDD

Implementing robust CDD measures is vital for several reasons:

1. Compliance with regulation

Adhering to CDD/KYC requirements ensures compliance with global AML regulations, reducing the risk of legal penalties and reputational damage.

2. Risk mitigation

CDD helps identify and mitigate risks associated with money laundering, terrorist financing, and other financial crimes. By understanding their customers, regulated institutions can detect and prevent suspicious activities more effectively.

3. Protecting financial systems

Effective CDD measures promote transparency and integrity within the financial system, building trust among clients and stakeholders.

4. Enhancing customer trust

Customers are more likely to trust businesses that prioritise security and compliance, leading to stronger business relationships.

Solutions for CDD compliance

The increasing complexity of regulatory requirements has led to the development of advanced solutions and automations to streamline the CDD process. These technologies enhance efficiency, accuracy, and compliance, making it easier for regulated entities to meet their obligations.

Digital identity verification

Automated ID&V solutions for verifying customer identities using government issued documentation and biometric data are becoming increasingly popular. These systems can quickly and accurately verify identities, reducing the risk of human error.

CDD AML requirements

Specialised AML software can screen customers against global PEP and sanction watchlists to identify illicit activity and can monitor transactions in real-time, flagging any suspicious activities for further investigation. These systems use machine learning and AI to detect patterns indicative of money laundering.

RegTech solutions

Regulatory technology (RegTech) solutions offer comprehensive tools for managing customer due diligence. These include automated identity verification, anti-fraud solutions, and ongoing monitoring, ensuring businesses stay up to date with regulatory changes whilst giving their customers a seamless onboarding experience.

Blockchain technology

Blockchain is emerging as a valuable tool for customer due diligence. This technology can enhance the integrity of CDD processes by providing an immutable record of all transactions and verification attempts. Although, the technology is still new and evolving, so uptake has been slow compared to RegTech automation.

How FullCircl can help

FullCircl works with 700+ businesses to understand their due diligence needs. Our IDV platform consisting of global KYC, AML, document verification, anti-fraud, and KYB is trusted by regulated entities to increase both the efficiency and effectiveness of customer onboarding whilst keeping ahead of evolving regulation.

Whether you need to explore CDD documents required, CDD requirements in the UK, KYC CDD requirements, or just curious in exploring transforming your compliance processes, we’re on hand to help.

Book a demo today to find out more.

Gambling act review: How to stay ahead of the latest changes

The hotly anticipated gambling act review has emerged as a critical initiative in the UK, aimed at modernising gambling regulation and ensuring the industry is fit for the digital age. The review was initially set to come into play in 2021, but due to various delays from COVID and Government priority, has slipped to only now coming into effect.  

Whilst the updated regulation will initially be imposed on operators in the UK, global jurisdictions have been keeping a close eye on the changes to regulation and how it impacts the industry.  

Originally enacted in 2005, the gambling act was designed to regulate betting activities, ensuring fairness and protecting vulnerable players. However, with the rise in online gambling and significant changes in how people engage with betting and gaming, it has become clear that the existing framework is no longer fit for purpose.  

One of the pivotal aspects of the gambling act review is the introduction of new financial risk checks (formerly known as affordability checks). These are designed to enhance responsible gambling initiatives and ensure that players are not gambling beyond their means.

The need for change within the industry is underscored by rising concerns about problem gambling. With an increasing number of people affected by gambling addition, with an estimated 0.5 of the adult population having a gambling problem, 3.8% gambling at at-risk levels, and 7% being negatively impacted by other people’s gambling, it’s critical to implement updated regulation that prioritises players over commercial goals.  

With the first round of changes set to be implemented from 30^th August 2024, this blog will explore the financial risk requirements the gambling industry needs to to act on and how to stay ahead of the regulation to avoid penalties and reputational damage.  ‍

Financial risk and vulnerability checks

‍Light-touch checks: From 30^th August 2024, operators must implement these checks on their players. These need to be triggered when players have £500 net deposits in a rolling 30-day period (reducing to £125 from 28^th February 2025).

The checks will trigger public records for bankruptcy, CCJ, IVA, HCJ, AO, or DRO.

The purpose of these checks is to inform customer interaction decisions, where the operators must act in response to results whilst considering all other information on the players. Once triggered, the check doesn’t need to be repeated for 12 months.  

Enhanced checks: Currently in a pilot phase for remote operators in fee categories J1+ from 30^th August 2024 to 31^st March 2025.

The gambling commission specified threshold include triggering a request for a financial risk assessment from a Credit Reference Agency (CRA), to include (where available) credit performance data and aggregated current account turnover.

Operators do not need to act in response to findings during the pilot phase.

Interim Betting & Gaming Council code: The code laid out by the BGC is voluntary but also not endorsed by the Gambling Commission.  

It includes a risk assessment of customers (without production of documents) before they are permitted net deposits of over £5000 per rolling month (or £2500 for under 25-year-olds), enhanced consideration of documentation triggered by a net deposit of over £25,000 in a rolling year.  

How FullCircl can help

FullCircl works with some of the biggest gambling operators including Entain, Novibet, and Fitzdares to understand their pain points in balancing revenue generation with player protection.  

We have developed a financial risk solution which satisfies the need for light-touch checks by evidencing data on players including bankruptcy, CCJ, IVA, HCJ, AO, or DRO. Our solution is designed to remove friction with players whilst staying ahead of the latest gambling commission regulatory guidance.  

FullCircl offers both no-code and low-code integration options to ensure that operators can efficiently implement new services without technical overheads or lengthy integration processes.

Contact us here to find out more.

Financial Institutions set to face significant costs for identity verification of shareholders

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The Economic Crime and Corporate Transparency Act (ECCTA) which came into force in October 2023, includes identity verification (IDV) requirements for directors, persons of significant control (PSCs) and shareholders, with the aim of improving the usefulness of company information held by the registrar i.e. Companies House.  

Whilst most financial institutions are aware of the ECCTA and the Companies House reform, many might not realise that the ECCTA requires all new and existing directors, PSCs and most presenters filing documents with Companies House, to verify their identity (it's estimated that some 7,687,000 unique officers must verify by Spring 2025), making this the costliest element of the reforms. The Government also consulted on extending identity verification to shareholders in its 2019 Corporate Transparency and Register Reform Consultation, but decided not to proceed with it.

The revised impact assessment for identity verification estimates that IDV and authorised corporate service provider reform as a whole will cost businesses around £19.5 million annually.

A bit of background

The ECCTA strengthens the UK’s efforts to combat economic crime via a wide-ranging suite of reforms. These include new and enhanced powers for Companies House to scrutinise information provided by companies and their directors, taking it from turning it from a largely passive recipient of company information to a much more active gatekeeper. Companies House now has enhanced abilities to verify the identities of company directors, remove fraudulent organisations from the register, and share information with criminal investigation agencies.  

Why so costly?

The introduction of IDV is the costliest element of the Companies House overhaul, making up around 75% of the estimated cost in the reform package.

Companies currently only must provide shareholder names and limited information about shareholdings to Companies House. Providing any further information comes at cost:

• Understanding this policy change and collecting additional information on shareholders to submit to Companies House.  
• Shareholders having to understand and take part in the identity verification process or confirm they have already been verified as PSC / director.
• Familiarisation costs i.e. cost to understand that shareholders will need to be identity verified and the processes associated with that .
• Ongoing costs – continuously collecting, collating and submitting additional information to Companies House going forward on their shareholders.

And we’re not just talking big companies here, or shareholders with majority stakes. The government’s position is that, under the Act, if a minority shareholder – however small their shareholding - exercises significant influence or control in a company, they will be required to verify their identity.

How to reduce the IDV cost burden

Adding to the cost burden is the fact that many financial institutions are currently using either heavily manual IDV processes or a plethora of disparate tools.  

This also presents possibly the biggest opportunity to reduce the IDV cost burden and boost the ability to meet the requirements of the ECCTA. In fact, 65% of corporate risk and compliance professionals believe that using technology to streamline and automate manual processes helps reduce the complexity and cost of compliance.

W2 by FullCircl is a single IDV platform to help you simplify the compliance process and meet regulatory requirements. We provide access to robust data to assist with real-time access to reliable, up-to-date information on directors, PSCs and shareholders including, but not limited to:

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• ID and age verification
• PEPs and sanctions screening
• Automated and manual document verification
• Facial comparison
• Address Lookup
• Email risk assessment
• Salacious name checks
• Director lookups and disqualified director data
• Affordability checks (for the gambling and gaming industries)

Find out more about the IDV requirements under the EECTA and their costs here.

Want to know more about IDV solutions and their benefit to your business? Download our free Buyers Guide to IDV Software.

Welcome to the latest updates from FullCircl. In this blog post, we'll dive into our recent product improvements and highlight the exciting new features our team is developing to enhance your experience with our services.

ISO 27001 certification

We are thrilled to announce that FullCircl has renewed and expanded ISO 27001 certification, underscoring our steadfast commitment to information security and data protection. By achieving this milestone, we ensure that your sensitive information is managed and protected in compliance with international best practices, reducing risks and providing you with greater peace of mind. ISO 27001 certification means you can trust that your data is in safe hands, enabling you to focus on your core business objectives without concerns about security vulnerabilities in your supply chain.

Email notification updates

We've updated the design of our Daily News and Engagement Signal emails. These emails help keep you updated on the latest news on the companies you are following and alert you to reasons to engage with clients and prospects.

FCA authorised indicator

Knowing a company's FCA authorisation status allows our customers to engage with compliant and reputable businesses, thereby enhancing risk management and overall compliance. We have introduced a new feature that indicates whether a company is authorised by the FCA. Additionally, we have updated our status indicators to display the 'official' status from Companies House. This enhancement enables us to show a broader range of statuses beyond just active or inactive, providing users with more detailed information, such as an intermediate status like 'in administration'.

Financial data history

We've increased financial history data from 5 years to 20 years for all UK-registered companies. Historical data can reveal trends, patterns, and potential red flags that may impact current and future financial health. This data can help to assess a company's ability to meet financial obligations and manage risks over time. 

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Lastly, a quick look at what's coming soon.

Search updates

The updated Search data will include dissolved and newly incorporated companies. This expansion will allow customers to conduct due diligence and understand directors' histories with these entities more comprehensively. It will provide valuable insights for informed decision-making and deeper analysis of business backgrounds and directorial associations.

FCA data

We’ll also be adding FCA data to our platform. This update will include crucial information such as the FCA reference number and the specific authorisations for each business. This enhancement will help you quickly verify the regulatory status and compliance of the companies you interact with.

Please visit our Release Notes page for more information on our latest updates.

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